IBM vs. CSCO, ANET, NOW, MU, VZ, UBER, TXN, AMAT, INTC, and INTU
Should you be buying International Business Machines stock or one of its competitors? The main competitors of International Business Machines include Cisco Systems (CSCO), Arista Networks (ANET), ServiceNow (NOW), Micron Technology (MU), Verizon Communications (VZ), Uber Technologies (UBER), Texas Instruments (TXN), Applied Materials (AMAT), Intel (INTC), and Intuit (INTU). These companies are all part of the "computer and technology" sector.
Cisco Systems (NASDAQ:CSCO) and International Business Machines (NYSE:IBM) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, dividends, profitability, risk, earnings, valuation, institutional ownership and media sentiment.
Cisco Systems has a net margin of 23.49% compared to Cisco Systems' net margin of 13.18%. Cisco Systems' return on equity of 40.21% beat International Business Machines' return on equity.
Cisco Systems has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Cisco Systems presently has a consensus price target of $56.36, indicating a potential upside of 16.59%. International Business Machines has a consensus price target of $181.29, indicating a potential upside of 7.31%. Given International Business Machines' stronger consensus rating and higher possible upside, equities research analysts clearly believe Cisco Systems is more favorable than International Business Machines.
Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. International Business Machines pays an annual dividend of $6.68 per share and has a dividend yield of 4.0%. Cisco Systems pays out 48.6% of its earnings in the form of a dividend. International Business Machines pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cisco Systems has increased its dividend for 13 consecutive years and International Business Machines has increased its dividend for 29 consecutive years. International Business Machines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Cisco Systems received 1305 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 73.33% of users gave Cisco Systems an outperform vote while only 58.68% of users gave International Business Machines an outperform vote.
73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 59.0% of International Business Machines shares are held by institutional investors. 0.0% of Cisco Systems shares are held by insiders. Comparatively, 0.1% of International Business Machines shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Cisco Systems has higher earnings, but lower revenue than International Business Machines. Cisco Systems is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.
In the previous week, Cisco Systems had 27 more articles in the media than International Business Machines. MarketBeat recorded 70 mentions for Cisco Systems and 43 mentions for International Business Machines. Cisco Systems' average media sentiment score of 0.58 beat International Business Machines' score of 0.55 indicating that International Business Machines is being referred to more favorably in the news media.
Summary
Cisco Systems beats International Business Machines on 13 of the 21 factors compared between the two stocks.
Get International Business Machines News Delivered to You Automatically
Sign up to receive the latest news and ratings for IBM and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding IBM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
International Business Machines Competitors List
Related Companies and Tools
